Ever wondered whats factored into your home insurance rates. Here are four major factors the insurance companies take into consideration.
Where your home is located.
Where your home is located can play a role in your rate. For instance if you are in a higher risk area for natural disasters, you may see higher home insurance rates, also rates be based off how far you are from your local fire station or fire hydrants.
Also credit rating can be a large factor that many people don’t consider when buying home insurance. A higher credit score, in some cases, may qualify for a better home insurance rate. Alternatively, a lower credit score can lead to a higher home insurance premium.
Each company varies, therefore we recommend getting quotes from multiple companies.
Condition of the Home
One of the biggest factors of home insurance is the condition of your home. In reality, Insurance companies want to insure properties that are well maintained. When your looking at buying a home, consider a home with a roof that has been updated within the last 15 years. Older roofs may lead higher rates. Some Companies will either not offer coverage on a home with an older roof or change how your policy will settle claims.
In addition to the roof, buyers should may want to make sure the wiring, plumbing and heating have been updated too.
Compare home insurance rates with multiple Companies
Buying a home can be an overwhelming process, in short most people don’t want to worry about home insurance. With this in mind, Did you know that shopping your home insurance can help get your Mortgage payment lower?
When you are going through the home buying process, you always want to check more than just one home insurance company.
Finally , we recommend shoppers check out the ABC’s of Homeowners insurance.